The main difference between loans and scholarships or grants is that you are responsible for repaying the loans. Be a smart borrower and only borrow what you need. You must be enrolled in at least 6 credit hours to receive loan funds. 

The option to accept federal student loans on your MyVU account for the upcoming award year will not be available until after the first week of July. We will send you an email letting you know when and how to complete the process.   

All of this can get a little intimidating, but don't worry. Our staff is here to help with your questions and concerns.

Federal Direct Student Loan

  • Federal program. First-year eligibility up to $5500; more for second and third years. Interest rate set annually by Congress.
  • There are two types of federal Stafford loans:
    • Subsidized loan – no interest accumulates until repayment starts; repayment is deferred for six months after graduation or dropping below half-time status (2022-2023 interest rate = 4.99%).
    • Unsubsidized loan – interest is charged immediately; student can pay interest while in school or let it accumulate until repayment starts; repayment deferred for six months as in subsidized loan (2022-2023 interest rate = 4.99%).


If you are seeking more information regarding how to have your federal student loans discharged due to total and permanent disability, you can find more information on the Federal Student Aid Web site. Or if you already have a federal student loan that has been discharged due to a Total and Permanent Disability and are applying for financial aid, please contact our office and ask to speak with a Financial Aid Counselor.

Federal Direct Parent PLUS Loan
For dependent students: Parents may be offered a Direct PLUS loan. To apply for this loan, you must fill out the Parent PLUS Loan Application at If the parent's credit is approved, the parent will also need to complete a PLUS Master Promissory. Note: Interest rate and processing costs set annually by Congress (2022-2023 interest rate = 7.54%; 4.228% of loan amount is kept by Federal Student Aid for processing). Credit check is conducted by the Department of Education. If a parent’s application is denied by the lender, the student is eligible for an additional unsubsidized direct student loan of up to $4,000 per year. To apply for this additional federal direct unsubsidized student loan, the student should go to their MyVU. There follow the directions for accepting student loans, only this time the student will accept the "Additional Unsub - PLUS Denial."

Private Loans
Also sometimes called alternative education loans. Terms and interest rates vary according to lender. Eligibility is based on credit worthiness as determined by the lender. If applied for in the name of a student who has no credit history or poor credit history, a credit-worthy co-signer is needed. Research private loans under the "Private Loan" link with the INvestED Marketplace and FASTChoice.

Repaying Your Loans
Repayment of student loans is very important for your financial stability going forward. If you have borrowed only federal student loans, get up-to-date information on the Federal Student Aid website. You can then choose “I’m in Repayment” to learn more about your repayment options. You can estimate monthly payments, weigh the pros and cons of combining all your federal student loans into one consolidation loan, and find how to start repaying your student loans.

Student loan payments suspended due to Coronavirus will restart after August 31, 2022.

If you have also or exclusively borrowed private student loans, refinancing them with a refinancing or refi loan might be an option to consider. A refi loan allows you to combine both private and federal loans into one loan and one payment. Understand that combining federal and private loans may not be your best option because that can affect your federal loan repayment benefits. For more information on consolidation and refinancing, check out our Loan Consolidation/Refinancing page.

  • Code of Conduct on Private Loans
    To comply with the 2008 Higher Education Opportunity Act and to prohibit conflicts of interest for personnel in student financial services, Vincennes University adopts the following code of conduct with respect to lenders of private education loans.  Vincennes University: 
    • does not require the use of particular lenders or in any way limit the choice of lenders.
    • processes loan applications through any lender a student or parent chooses.
    • does not solicit or accept anything of value from any lender in exchange for any advantage sought by the lender to make educational loans to students of the university.
    • prohibits employees of student financial services and any employee who otherwise has responsibilities with respect to educational loans from entering into any type of consulting arrangement or other contract to provide to a lender services relating to educational loans.
    • prohibits employees of student financial services and any employee who otherwise has responsibilities with respect to educational loans, who serve on an advisory board relating to educational loans established by a lender from receiving anything of value from the lender in conjunction with service on such an advisory board.
    • prohibits external lenders’ employees, representatives, or agents from providing staffing services to the student financial services office.
  • Information for Students from Washington State
    For Washington State residents seeking information and resources about student loan repayment or seeking to submit a complaint relating to your student loans or student loan servicer, please visit or contact the Student Loan Advocate at 


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